IBEC calls for focus on jobs

Employers group IBEC has called on the Government to renew its focus on jobs and confidence in the domestic economy following publication of the results of the CSO survey on household cutbacks.

IBEC warned that a significant number of new jobs will not be created until the domestic economy returns to growth.

Commenting on the CSO findings, IBEC senior economist Reetta Suonperä said the extent to which people had been affected by the economic downturn was unsurprising, particularly in how it had affected unemployed people most severely.

On a positive note, Ms Suonperä said the savings rate remained high despite many people having to dip into their savings.

“There remains a significant number who have the capacity to spend, if confidence returns,” she observed.

However, she expressed concern that the Government’s plans to create 100,000 new jobs by 2016, which were announced earlier this week, lacked significant measures to boost consumer confidence and domestic demand.

IBEC has urged the Government to introduce a range of revenue-neutral initiatives such as allowing people to release a portion of additional voluntary contributions to their pension scheme.

“The case for investing in strategic infrastructure through either pension funds, proceeds from the sale of State assets or in partnership with the private sector, remain compelling,” said Ms Suonperä.

Retail Ireland, a division of IBEC, said the CSO research had highlighted the ongoing challenges facing the retail sector.

It called on the Government to be more ambitious in its efforts to create an environment that supports jobs and to reduce the cost to businesses such as local authority charges, utility costs and rents.

Retail Ireland director Stephen Lynam said retailers would not be surprised by the findings as they had firsthand experience of the fall in consumer spending and its impact on their business.

It is estimated that retail sales have decreased by 30% since their peak in 2008, with 47,000 jobs lost in the sector over the same period.

While welcoming the Government’s Action Plan for Jobs, Mr Lynam said costs still remained high compared to some of Ireland’s competitors.

He said job creation would remain hampered until the costs of business were driven down.